Real estate investments involve purchasing properties to generate income or appreciate in value over time. Investors can buy residential properties, such as houses and apartments, or commercial properties, like office buildings and retail spaces. The goal is to earn rental income or sell the property later for a profit. Investing in real estate can also include real estate investment trusts (REITs), which allow individuals to invest in large-scale properties without directly owning them. This method provides a way to diversify an investment portfolio while benefiting from the potential growth of the real estate market.